Yorkton Equity Group Inc. Receives TSX Venture Approval for the Closing of the Purchase of a 62- unit Apartment Condominium Complex and Limited Partnership units in a 193-unit Apartment Condominium Development

Edmonton, Alberta – TheNewswire – May 25, 2021 – Yorkton Equity Group Inc. (“YEG” or the “Company”) (TSX.V: YEG) is pleased to announce TSX Venture Exchange approval for the closing of the previously announced acquisitions of 1205946 Alberta Ltd. (a 62-unit apartment condominium complex called “Riviera Gardens” in the City of Edmonton), and approximately twenty-five percent (25%) of limited partnership units of Yorkton 108 Limited Partnership, a development project located in the Surrey City Centre which has been approved for 193 apartment condominium units by the City of Surrey in December 2020 (“Yorkton 108”). According to the project developer, Yorkton Group, a multi-award winning developer, project ground-breaking is anticipated by the fall of 2021, with completion by the end of 2023.

Mr. Bill Smith, the Chairman of YEG says “With our acquisition of the Riviera Gardens, a 62-unit apartment condominium complex, we are geographically diversifying our portfolio with an acquisition that has a higher cash flow and capital appreciation potential.. With our investment in the Yorkton 108 development project as a limited partner, we are also signaling our decisive entry into the vibrant Metro Vancouver and BC rental markets. The closing of these acquisitions marks a significant milestone in growing the net asset value (NAV), and the net operating income (NOI) of our portfolio, consistent with our risk-averse multifamily residential property growth model.”

The Company received final approval from the TSX Venture Exchange on May 14, 2021 for:

  • the acquisition of all of the issued and outstanding shares of 1205946 Alberta Ltd. from Lui Holdings Corporation (a corporation owned and controlled by a director and officer of the Company) on a tax-deferred basis pursuant to Section 85 of the Income Tax Act for a purchase price of $4,235,000 by issuance of 16,940,000 common shares in the capital of YEG (“Common Shares”) at a deemed price of $0.25 per Common Share; and

  • the acquisition of 2,498,963 limited partnership units in Yorkton 108 for an aggregate amount of $3,648,485 from Lui Holdings Corporation by the issuance of 14,593,943 Common Shares at a deemed price of $0.25 per Common Share.

The receipt of final approval increases the Net Asset Value (“NAV”) of the Company by approximately $8.0 million dollars and diversifies the asset portfolio of the Company to include residential rental property in the Province of Alberta, and the limited partnership units in a residential condominium development that is planned to be a purpose-built residential rental property in the province of British Columbia.

The acquisition of Riviera Gardens and Yorkton 108, as described in the Company’s information circular filed on SEDAR on April 13, 2021, constituted a related party transaction, which required “majority of minority” shareholder approval in accordance with MI 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The acquisitions were approved by the disinterested shareholders of the Company at its special meeting held on April 19, 2021 (see press release dated April 20, 2021). Eligible voting shares refer to the total outstanding Common Shares excluding Common Shares of the related party, which, for the purposes of the resolutions, was defined as Common Shares held by Ben Lui, a director and officer of the Company who owns, directly or indirectly 50,977,902 of the voting shares.

The Company relied on the exemption from the formal valuation requirement of MI 61-101set out in paragraph (b) in section 5.5 of MI 61-101 since YEG is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange.

About Yorkton Equity Group Inc.
Yorkton Equity Group Inc. is a fully integrated, growth-oriented real estate investment company committed to providing shareholders with growing assets, and stable income through the accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our geographical focus is in primary and secondary markets across Canada with diversified, growing economies, and strong population in-migration, with an initial focus in British Columbia. Our business objectives are to achieve stable Net Operating Income (NOI) and growing Net Asset Value (NAV) in our multi-family rental property portfolio by deploying a risk averse business model to create the ultimate value proposition for our shareholders.

Yorkton Equity Group Inc. is built on the solid foundations of the Yorkton Group of companies with strong financial capacity, and well over 30 years of real estate experience.

Further information about the Yorkton Equity Group Inc. is available on the Company’s website at www.yorktonequitygroup.com and the SEDAR website at www.sedar.com. Please contact us at investors@yorktonequitygroup.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information on Yorkton, please contact:

Ben Lui
Chief Executive Officer
Tel: (780) 409-8228 (Ext. 222), Mobile: (780) 907-5263
Email: investors@yorktongroup.com

Forward-Looking Information
This press release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of Yorkton. Forward-looking information is based on certain key expectations and assumptions made by the management of Yorkton.

Although Yorkton believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Yorkton can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Yorkton disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.